First Allied Settles SEC's Supervision Claims For $2M

Law360, New York (March 5, 2010, 5:04 PM EST) -- The U.S. Securities and Exchange Commission has reached a $1.95 million settlement with San Diego-based broker-dealer First Allied Securities Inc., putting to rest claims that the company failed to adequately supervise a broker the SEC recently accused of fraudulent trading.

In an order released Friday, the SEC claimed that between May 2006 and March 2008, First Allied broker Harold H. Jaschke engaged in fraudulent trading with the accounts of two Florida municipalities.

According to the SEC, Jaschke executed numerous unauthorized transactions, made unsuitable recommendations and churned...
To view the full article, register now.